Lenders use your cibil score to determine how hazardous a borrower you are. The higher your credit score, the less risk a lender is willing to take on. As a result, it’s critical to raise your credit score as high as feasible.
A credit score of 850 on the FICO scale is consider flawless, although most customers do not have perfect credit. You don’t even need to strive for perfect credit, as it’s exceedingly difficult to achieve. However, if your credit score is now at 700, it may be worthwhile to concentrate on improving it, even if it is an excellent number, to begin with.
What are the benefits of having a higher cibil score?
A credit score of 700, according to Equifax, one of the major credit bureaus, is consider good. A score of 740 to 799, on the other hand, is deemed very good, while a score of 800 or more is considered exceptional.
Now, while these may appear to be arbitrary classifications, what they truly indicate is that while a credit score of 700 isn’t bad, it’s also not exceptional. If you want to be able to borrow at the lowest possible rates, it’s a good idea to work on improving your 700 credit score.
Similarly, while a credit card application with a score of 700 is undoubtedly achievable, some of the finest credit card offers require a higher score. And you’ll need to raise that 700 to be eligible for them.
How can you improve your credit score?
Increasing your credit score isn’t something that will happen overnight. However, you may be able to increase that amount in the future.
You may improve your credit score in a variety of ways. But paying all of your bills on time is a smart place to start. When it comes to establishing your credit score, your payment history is more important than any other aspect.
Paying down some existing credit card debt might also help you improve your score. Another important aspect that affects your score is credit utilization, which refers to how much of your total revolving credit you’re utilizing at any given time.
If paying off a large portion of credit card debt isn’t an option, you can reduce your utilization (which will improve your score) by requesting a credit card limit increase. If you’ve had a good credit card account for a while or can produce proof of a better income than when you originally applied for your cards, your credit card issuers may be willing to help.
Finally, it’s always a good idea to double-check your credit report for mistakes. Once a year, each major credit reporting bureau (Experian, Equifax, and TransUnion) must provide you a free copy. Credit reports are currently available for free on a weekly basis till April. If you find a mistake on your credit report that could be lowering your score, such as a debt you never took on, having it fixed could help you raise your score quickly.
While there’s no need to beat yourself up over a credit score of 700. It might be in your best interests to improve it. The good news is that you’ll have an excellent cibil score to begin with. So you should be able to work on improving your credit without too much difficulty. For that you should learn how to increase cibil score.